Michelin Spending $750M On US Expansion, Job Creation

A Michelin tire is seen on the racing circuit in Le Mans, central France Photo: Reuters

Michelin SCA, the world's second largest tire maker behind Bridgestone Corp., said Tuesday it will build a factory in South Carolina and expand another in the state in a $750 million expansion.

Earthmover tire factory, which is being built in Anderson County, S.C., will cost about $500 million and create as many as 500 jobs; the expansion of the Lexington passenger and light truck tire plant will cost about $250 million, the French company said.

Production at the expanded Lexington factory is set to begin in October.

The Anderson County plant, which makes tires for huge construction and mining trucks, will be the French company's 19th manufacturing facility in North America and its ninth in South Carolina, where more than 8,000 of Michelin North America's 22,300 employees are based.

The Earthmover tires can measure more than 12 feet across, weigh more than five tons and cost as much as $250,000 each.

The market for Earthmover tires grew by more than 20 percent between 2009 and 2011. This new facility will help us meet sustained demand while also attaining our growth objectives for 2015, Jean-Dominique Senard, managing general partner of Michelin, said in a statement.